What are Structured Settlements?
Structured Settlements are most often used in resolving personal physical injury claims or lawsuits. They create a stream of customized periodic payments and lump sums that are funded by annuities with a fixed rate of return from highly-rated Life Insurance companies. When a structured settlement is used to fund a personal physical injury claim, it provides the payments tax-free. Structured Settlements are protected and governed by Federal legislation and IRS regulations. You can be confident that the overall benefit of structured settlement for injured people has been proven time and time again.
Who should use Structured Settlements?
Any combination of the following criteria may be used to decide if a structured settlement is appropriate for a personal injury situation:
• The loss amount is greater than $10,000 and there is an opportunity to defer some of the payments for three or more years.
• There is involvement of a minor child and a loss of $5,000 or more.
• The injured party has a desire for the security and peace of mind gained from receiving a steady stream of income over a long period.
• The injured party has little experience and some discomfort with managing large sums of money all at once or over time.
• The injured party wants to shelter the settlement monies from future taxation on the earnings.
• The severity of the party’s injuries and future care needs will best be served by a plan of periodic payments and lump sums.